856250--9/13/2006--CRAFTMADE_INTERNATIONAL_INC

related topics
{customer, product, revenue}
{operation, international, foreign}
{condition, economic, financial}
{regulation, change, law}
{debt, indebtedness, cash}
{cost, operation, labor}
{system, service, information}
{acquisition, growth, future}
{personnel, key, retain}
{stock, price, operating}
{tax, income, asset}
A decline in general economic condition, particularly the housing, home construction, and remodel sectors, could lead to reduced demand for the Company s products. The loss of certain of our customers that represent a significant percentage of our net sales could adversely affect our results of operations. Our mass merchandise customers may pressure us to lower our prices or take other actions that may adversely impact our results of operations. To the extent our mass merchandiser customers purchase product in excess of consumer consumption in any period, our net sales in a subsequent period may be adversely affected as mass merchandisers seek to reduce their inventory levels. Increases in our shipping costs or service trouble with our third-party shippers could harm our business. We experience fluctuations in our quarterly earnings. As a result, we may fail to meet or exceed the expectations of securities analysts and investors, which could cause our stock price to decline or be highly volatile. Our failure in pursuing or executing any of our new business ventures, strategic alliances and acquisitions could have a material adverse impact on our business. Our revenues depend on our relationships with capable sales personnel as well as key customers, vendors, and manufacturers of the products that we distribute to our customers. Our future success is substantially dependent upon our senior management and retention of key personnel. Our inability to meet financial covenants contained in our credit facilities could adversely impact our ability to fund our operations. We are exposed to the risk of an increase in interest rates. We are exposed to the risk of foreign currency appreciation. Tax legislation initiatives could adversely affect the Company s net earnings and tax liabilities. We rely heavily on our management information systems for inventory management, distribution and other functions. If our systems fail to perform these functions adequately or if we experience an interruption in our operations, we could be materially adversely affected. We are subject to increasingly complex corporate governance, public disclosure, accounting, and tax requirements that has increased our costs and the risk of our not being in compliance with these requirements.

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